Do Roth IRA conversions require that RMDs first be taken from both IRAs and 403bs?
I am of the age where I am required to take RMDs from all of my retirement accounts and I have both IRAs and a 403b. I am also gradually converting assets from the IRAs into my Roth IRA for the benefit of my eventual heirs. In a given year do I have take all RMDs (from both the IRAs and my 403b) before I can convert any dollars from the conventional IRAs into my Roth IRA? Or can I take the RMDs from only the IRAs, then do Roth IRA conversions and later in the same year take the RMD from the 403b?
Permalink Submitted by Alan - IRA critic on Sun, 2020-03-15 15:13
Your 403b RMDs are totally separate from your IRAs, so you can convert IRAs before 403b RMDs are even started. In addition, if you have more than one IRA account, you must first take your RMD for only the IRA that you want to convert, and then you can convert from that IRA account before taking your RMD from your other IRA accounts. Therefore, if you want to convert from your IRA, you can set up the account balance to allow for most of your RMDs to be done well after your conversions.